The Bangladesh Securities and Exchange Commission (BSEC) has approved the initial public offering (IPO) prospectus of Ring Shine Textiles Ltd (RSTL) worth Tk 1.5 billion.
BSEC approved the IPO at a commission meeting held in Dhaka, on Wednesday (Mar 13). BSEC Chairman M Khairul Hossain presided over the meeting, according to a press release.
As per the BSEC approval—under the fixed price method—Ring Shine Textiles will offload 150 million ordinary shares worth Tk10 each. AFC Capital and CAPM Advisory Limited will act as the issue manager for the IPO process.
Net Proceeds from IPO will be used for procurement and installation of machineries for the existing factory unit, partial repayment of bank loans of the company and to meet the IPO expenses, within 18 months of receiving the IPO funds.
According to the financial statement ended on June 30, 2018, the company's net asset value (NAV) per share stood at Tk23.17, while the weighted average of earnings per share (EPS) was Tk1.46.
Authorized capital of the company stands at Tk 4.4 billion and paid-up capital stands at Tk 2.85 billion.
The major activities of the RSTL is manufacturing and marketing of gray and finished fleece fabrics of various qualities, and dyed yarn to the ready-made garment (RMG) industry of Bangladesh.
RSTL commenced commercial operation in August, 1998, and converted to a public limited company on June 8, 2017.